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Al-Ahram Weekly 1 - 7 June 2000 Issue No. 484 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 1 - 7 June 2000 Issue No. 484
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Focus Features Heritage Travel Living Sports Profile People Time Out Chronicles Cartoons Letters From American aid to trade
By Sherine NasrThe US deputy assistant secretary responsible for the Near East and North Africa, Molly Williamson, said there was "great interest" within American business regarding opportunities in Egypt. During her visit to Cairo this week, she stated that one of her goals was to inform the Egyptian business community "that there is tremendous interest among American businessmen to find Egyptian partners." Prior to her arrival in Cairo, Williamson had been on an information tour through six American states promoting the possibilities of Middle East markets. Of this tour she said, "The main reference point was Egypt. American businesses are interested in building factories to produce goods and subsequently to export these goods to other smaller Middle East countries."
In 1998, US investment in Egypt totalled $543 million, excluding petroleum. In total, the Egyptian market accounts for twelve percent of all US investment in the region. This influx of foreign direct investment could help shift the Egypt-US economic relationship from aid to trade. Last year, American economic assistance to Egypt was reduced by $40 million. Currently, Egypt is the second largest American export market in the Middle East, behind Saudi Arabia. Development programmes are now more focused on upgrading labour skills and increasing trade and investment.
According to Williamson, "We have tremendous ways to grow together." She described the potential of cooperation between the two countries as "limitless." The primary sectors of interest are energy, technology, health, pharmaceuticals, education, agriculture, tourism and infrastructure development.
The technology sector has been particularly active. Egypt and the US signed in 1998 an agreement that initiated the first bilateral effort to promote e-commerce within the region. Williamson noted that e-commerce has developed from nothing into global trade worth approximately $12 billion. The Middle East cannot afford to be left behind.
As part of her task in providing information on regional business opportunities, Williamson said that her team has been very successful using computer databases "to connect American businessmen [and] workers federations with their relevant Egyptian counterparts." The primary function of the databases is to advise Egyptian business on what would make the environment "more hospitable." Williamson emphasised there was much opportunity within small and medium-size enterprises. Congress has been invested with a specific mandate to promote growth within this area. Williamson also pointed out that there are many opportunities on the level of state governments. She cited the State of New Jersey, which has just opened a bureau in Cairo, as an example. Williamson explained that the main task of the bureau "is to promote US-Egyptian trade relations by connecting relevant industries together."
Yet, despite her general optimism, Williamson underlined some persistent American business concerns. Foremost among the factors inhibiting greater investment, said Williamson, are "lack of transparency and lack of guidance." She explained that there is a fear among American investors that they lack the necessary knowledge to effectively negotiate a "7000-year-old bureaucracy." This fear must be put to rest. Williamson explained that American businesses are accustomed to enjoying considerably more economic freedom than the Egyptian environment currently allows. Consequently, greater capital mobility within the Egyptian market is a requisite for inspiring stronger investor confidence.
